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I have used two different brokerages (Datek and Waterhouse) to place stop
orders on NASDAQ stocks and it has worked as anticipated (i.e. without
problems). With Waterhouse you are limited to stop market orders (for MANY,
MANY reasons I do not recommend them), but with Datek you have a stop limit
option as well. I don't know which broker gave you the idea that stop
orders are not possible for NASDAQ stocks, but with limitations like that I
strongly suggest you find a new one.
-----Original Message-----
From: UG <ug@xxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Wednesday, October 21, 1998 11:07 AM
Subject: MKT/GEN: NASDAQ question
>
>I think I understand why NASDAQ doesn't allow stop orders. As I
>understand it, on NYSE stocks, a stop order is given to a specialist who
>will then change it to a market order when the bid/ask gets to the stop
>price. Since NASDAQ has no floor, and hence no specialists, it can have
>no stop orders.
>
>How is this different than a limit order? Say the bid/ask on XYZ is
>98/100. If I place a limit order for 99, what happens? Does the inside
>market change to 99/100 to reflect my new bid?
>
>In other words, how are the mechanics of a stop order different from a
>limit order?
>
>--
>========================================================================
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>than you free with my breakfast cereal. Douglas Adams, spoken by Zaphod
>Beeblebrox
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>
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